In recent days, several Canadian officials, including governors of provinces such as Ontario and Alberta, as well as Prime Minister Justin Trudeau, have expressed concerns about the future of the United States-Mexico-Canada Agreement (USMCA).
According to analyst Luis Rubio, these statements point to a fundamental issue: imports of Chinese inputs and the integration of products of Chinese origin into the Mexican production chain, which, according to the Canadians, would contravene the rules of the agreement.
“The Mexican government has not really had a relevant response. There have been some journalists who say that Mexico is competing with Canadian products in the US market and that this motivates these actions, but it seems to me an unreasonable, illogical explanation. The economies of Mexico, Canada and the United States are complementary; they produce different things that are integrated along the production chains, especially in the automotive sector.”
Luis Rubio
Rubio notes that beyond potential one-off trade conflicts, Canada is taking a strategic stance to protect its economic viability in the event that relations between Mexico and the United States deteriorate.
“Canadians are very clear that the treaty is absolutely crucial to them. If the Americans decide not to continue a trade relationship with Mexico as it exists now, Canada wants to preserve its own agreement.”
The Canadian position evidences a significant difference in trade policy priorities. While Canada is actively moving to secure its economic future, Mexico seems stuck in its ability to recognize the real problems within the trilateral relationship.
Rubio notes with concern: “We are also dependent on the Americans. We are simply not willing to recognize it. And the longer we delay doing so, the more complicated the negotiation with them will be and the more difficult it will be to raise living standards in Mexico, which is ultimately the only thing that matters.”
Source: unotv
